Market Roundup
•French Apr S&P Global Composite PMI 49.9, 48.3 previous
• French Apr Services PMI 50.5, 48.9 forecast, 48.3 previous
• French Apr Manufacturing PMI 44.9, 46.9 forecast,46.2 previous
•German Apr Manufacturing PMI 42.2,42.8 forecast,41.9 previous
•German Apr German Composite PMI 50.5,48.6 forecast,47.7 previous
•German Apr Services PMI 53.3, 50.6 forecast,50.1 previous
•EU Apr Services PMI 52.9,51.8 forecast, 51.5 previous
•EU Apr Manufacturing PMI 45.6,46.5 forecast,46.1 previous
•EU Apr S&P Global Composite PMI 51.4,50.8 forecast, 50.3 previous
•UK Services PMI 54.9, 53.0 forecast, 53.1 previous
•UK Manufacturing PMI 48.7, 50.3 forecast,50.3 previous
•UK Composite PMI 54.0, 52.8 previous
Looking Ahead Economic Data(GMT)
•12:55 US Redbook (YoY) 4.9% previous
•13:45 US Apr Services PMI 52.0 forecast,51.7 previous
•13:45 US Apr Manufacturing PMI 52.0 forecast,51.9 previous
•13:45 US Apr S&P Global Composite PMI 52.1 previous
•14:00 US Apr Richmond Services Index -7 previous
•14:00 US Mar New Home Sales 668K forecast,662K previous
•14:00 US Apr Richmond Manufacturing Index -7 forecast,-11 previous
•14:00 US Apr Richmond Manufacturing Shipments -14 previous
•14:00 US Mar New Home Sales (MoM) -0.3% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against dollar on Tuesday after data showed business activity overall in the euro zone expanded at its fastest pace in nearly a year this month. Overall business activity in the euro zone expanded at its fastest pace in nearly a year this month as a buoyant recovery in the bloc's dominant service industry more than offset a deeper downturn in manufacturing, a survey found. HCOB's preliminary composite euro zone Purchasing Managers' Index (PMI), compiled by S&P Global, bounced to 51.4 this month from March's 50.3, well ahead of expectations in a poll for 50.7 and marking its second month above the 50 level separating growth from contraction. The euro climbed as much as 0.39% on the dollar to $1.0695 , a one week high, before drifting back to trade flat on the day at $1.0655 . Immediate resistance can be seen at 1.0680(38.2% fib), an upside break can trigger rise towards 1.0714(50% fib).On the downside, immediate support is seen at 1.0635 (23.6% fib), a break below could take the pair towards 1.0600 (23.6% fib).
GBP/USD: The pound steady against the dollar on Tuesday after data showed British businesses recorded their fastest growth in activity in nearly a year. The S&P Global UK Composite Purchasing Managers' Index for the services and manufacturing sectors jumped to an 11-month high of 54.0 in April from March's 52.8, above all forecasts in a Reuters poll of economists. The gain was led by an big rise in the services index to 54.9 from 53.1, while the index for the smaller manufacturing sector unexpectedly fell to 48.7 from 50.3, a move below 50 that takes it into contractionary territory. The pound rose as much as 0.3% against the dollar after the data was released, but failed to hold those gains and was last just in positive territory. Immediate resistance can be seen at 1.2409(38.2%fib), an upside break can trigger rise towards 1.2437 (EMA 9).On the downside, immediate support is seen at 1.2334(23.6 % fib), a break below could take the pair towards 1.2305 (April 22nd low).
USD/CHF: The dollar retreated against the Swiss franc on Tuesday as investors viewed that no rate cuts will be forthcoming any time soon from the Federal Reserve .Investors will have another chance to assess the strength of the U.S. economy this week, with first-quarter gross domestic product data on Thursday and personal consumption price expenditures (PCE) index, the Fed's preferred measure of inflation, on Friday . Markets forecasts are for a 0.3% increase in the headline PCE number in March, unchanged from the previous month, and a year-on-year gain of 2.6%, compared with a 2.5% increase in February, according to a poll. Immediate resistance can be seen at 0.9128 (April 22nd high), an upside break can trigger rise towards 0.9150 (23.6% fib).On the downside, immediate support is seen at 0.9079 (38.2% fib), a break below could take the pair towards 0.9017(50% fib).
USD/JPY: The U.S. dollar climbed to a fresh 34-year peak against the yen on Tuesday keeping investors on heightened intervention watch ahead of this week's Bank of Japan meeting. The dollar rose to 154.87 yen, its highest since 1990 and edging closer to 155, a level seen by many participants as the new trigger for intervention by Japanese authorities. Japanese Finance Minister Shunichi Suzuki said last week's meeting with his U.S. and South Korean counterparts has laid the groundwork for Tokyo to act against excessive yen moves, the strongest warning to date on the chance of intervention. Japan's central bank is expected to project inflation will stay around its 2% target for the next three years in new forecasts due on Friday, signalling its readiness to cautiously raise interest rates again this year from near-zero levels. Strong resistance can be seen at 154.84 (23.6% fib), an upside break can trigger rise towards 155.00 (Psychological level).On the downside, immediate support is seen at 154.14 (5 EMA), a break below could take the pair towards 153.44 (38.2% fib).
Equities Recap
European stocks scaled to their highest levels in more than a week on Tuesday, driven by the healthcare and technology sector, as investors found comfort in upbeat corporate earnings, while the UK's FTSE 100 Index climbed to hit an all-time peak.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.09 percent, Germany's Dax was up by 1.01 percent, France’s CAC finished was up by 0.40 percent.
Commodities Recap
Oil prices slipped on Tuesday after a short-lived boost from stronger economic data out of Europe as the market weighed the potential fallout from any fresh U.S. sanctions on Iran's oil exports.
Global benchmark Brent crude oil futures were down 51 cents or 0.6% at $86.49 a barrel by 1141 GMT, while U.S. West Texas Intermediate crude futures fell 56 cents or 0.7% to $81.34.
Gold prices fell to a more than two-week low on Tuesday as easing concerns of an escalation in the Middle East crisis triggered profit-taking after a recent rally.
Spot gold fell 1.0% to $2,303.59 per ounce by 1203 GMT. Gold, silver and palladium touched their lowest since April 5 earlier in the session, while platinum hit a three-week low.
